Foreign Inward Remittance Certificate (FIRC)
A Foreign Inward Remittance Certificate (FIRC) is a document issued by the recipient's bank in India as an acknowledgment of receiving a fund transfer from a foreign country. It serves as official proof of receipt of the remittance and is often required for regulatory and tax purposes.
Key Details:
- Issuer: Authorized bank in India receiving the foreign remittance.
- Purpose: Proof of foreign currency inflow into India.
- Format: Typically, a physical document with a unique serial number, ব্যাংক details, remittance amount, currency, sender and beneficiary details.
- Validity: No specific expiry date, but it's essential to retain it for future reference.
Why is FIRC Required?
- Regulatory Compliance: FIRC ensures compliance with FEMA (Foreign Exchange Management Act) regulations in India.
- Taxation: It serves as evidence of income for tax purposes.
- Repatriation of Funds: May be required when repatriating funds back to the foreign country.
- Audits: Essential during audits to verify foreign currency transactions.
When is FIRC Required? - Large Value Transactions: Typically for transactions exceeding INR 50,000.
- Business Transactions: For commercial receipts, exports, professional services, etc.
- Non-Resident Indians (NRIs): May be needed by NRIs receiving funds from abroad.
How to Obtain FIRC?
To receive FIRC for a payout, set the firc_required field to true in the bank object inside the beneficiary object.
Important Notes:
- FIRC is not automatically generated. We request it from the banks and provide to our customers.
- Some banks may issue an e-FIRC (electronic FIRC).
- Ensure all transaction details are accurate to avoid delays.
- Keep the FIRC safe as it's an important financial document.
Updated 19 days ago